The beverage company has already announced that it will longer produce some beloved if outdated, drinks such as Tab, Zico, and Odwalla.
It was on Thursday that the company officially announced that it would get rid of 200 of them.
According to Coca-Cola, its portfolio will enable the company to focus on its most profitable offerings including Coca-Cola Zero Sugar together with brands that fit into the trendy new categories such as Topo Chico hard selters and AHa, a caffeinated seltzer it recently launched.
The company’s CEO James Quincey did not however mention which brands are likely to get axed but mentioned that the “hydration” category Dasani, Powerade, Vitamin Water, and Zico, and other brands, will likely see more cuts.
Sports and water drink volumes have reduced by 11% in the third quarter.
Most of the brands Coke is willing to shut down are only sold in certain markets and not nationwide.
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Quincey noted that the stark difference between Coca-Cola’s successful brands and its struggling ones. He said the underperforming drinks have “little to no scale,” and their sales represent only 2% of the overall revenue.
Cutting off some of its brands is one of the strategies the company laid out to help it grow. According to Coke, the move will free up resources to invest in higher-growth beverages.
Coca-Cola has been struggling more so during the Covid-19 pandemic since restaurant closure. In the third quarter, the company registered an $8.7 billion a 9% decline.
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